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A New Concern for Content Licensors: Perpetual Licensees Deemed to Be Owners

By Jason D. Sanders
February 26, 2009

With the tremendous growth of digital media, content such as music, images, books, and software is increasingly distributed pursuant to a license rather than by a traditional sale with a transfer of title. The distinction between a traditional sale and a license can be important, because a “licensee” is not necessarily given the same rights under the Copyright Act as an “owner” who purchases a work and acquires title to it. Two courts in the Ninth Circuit have recently addressed how to differentiate between an “owner” and a mere “licensee” for purposes of rights under the Copyright Act, and have reached decisions that might surprise many practitioners.

Different Rights for an Owner and a Licensee

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